VIBRANT SMES CATALYST TO ECONOMIC GROWTH

By BUSINESS REPORTER LACK of capacity development training among Micro Small and Medium Scale Entrepreneurs (SMEs) is a challenge for the development of the sector in Zambia, Japan International Cooperation Agency (JICA) senior management advisor Hideo K ato has said.

Mr Kato said it was through capacity building that SMEs would be able to develop Lack of capacity development training among SMEs is a challenge for the development of the sector in Zambia and effectively contribute Zambia’s economic growth.

He noted that a productive SME sector was the engine for the development and growth of a country’s economy.

Mr Kato was speaking in an interview with the Daily Nation in Lusaka.

He said market linkages were important and that in Japan most of the small companies had been able to grow due to the support they receive from already established companies.

“Financial inclusion and market linkages are important but still remain a challenge as most SMEs have the products but they do not have a ready market to supply these goods to.

“=ambia needs to find market capacity as well as form to partnerships to bring in more development in the sector and this can best be done through the provision of micro finance services, “he said.

He said marketing workshop was necessary for the SMEs to be able to develop and find their feet.

Mr Kato said the best lesson that Zambian business owners could get from those in Japan was discipline.

“Japanese people are very disciplined and focused and this is what has helped them in the development of their business ideas and after staying here for two months I have realised that there is an easy going economy in Zambia with a lot of opportunities in the country,” he said.